TaxTMI 
TaxTMI 
We have paid amount of Rs:90,000/- towards hire Charges upto 30-9-2009 but we have not deducted TDS U/s.194I, and in the month of October, 2009 we have paid an amount of Rs:50,000/-. So, whether we have to deduct TDs @ 2% on whole or 10% on payment made before 30-9-2009 and 2% after september,2009. Please advice
Applicability of rate in TDS
23 Dec 2009 
2 Replies 
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TDS rate change: apply pre amendment withholding to payments before the effective date and new rates thereafter.
Withholding obligation depends on payment date: apply the pre amendment TDS rate to payments made before 1 October 2009 and the post amendment rate to payments made on or after that date. If earlier payments to the same payee were not likely to exceed the statutory exemption threshold for rent/hire in the year, TDS on those earlier payments would not have been required, provided that factual likelihood is established and documented; consideration may be given to whether contractor withholding rules better fit the facts. (AI Summary)
Withholding obligation depends on payment date: apply the pre amendment TDS rate to payments made before 1 October 2009 and the post amendment rate to payments made on or after that date. If earlier payments to the same payee were not likely to exceed the statutory exemption threshold for rent/hire in the year, TDS on those earlier payments would not have been required, provided that factual likelihood is established and documented; consideration may be given to whether contractor withholding rules better fit the facts. (AI Summary)